The Gem & Jewellery Export Promotion Council (GJEPC) has voiced strong concern following former US President Donald Trump’s announcement of a sweeping 25% tariff on all Indian imports, warning of serious implications for trade, jobs, and supply chains.
Kirit Bhansali, Chairman of GJEPC, stated that the proposed move could significantly disrupt India’s economic fabric. “The US announcement of a 25% tariff on Indian goods, along with unclear penalties affecting our strategic trade relations, is deeply troubling. If enforced, it could trigger a domino effect across our export sector, jeopardising supply chains and threatening the livelihoods of thousands,” Bhansali said.
The US is India’s largest export destination for gem and jewellery products, accounting for over $10 billion annually, nearly 30% of the industry’s global exports. A tariff of this scale, GJEPC cautioned, would increase costs, create shipment delays, distort pricing structures, and exert tremendous stress on the entire value chain—from small artisans (karigars) to large-scale manufacturers.
Trump’s declaration sets India’s import tariff at 25%, effective August 1, 2025, higher than rates offered to several nations with which the US has trade understandings. For instance, tariffs for the European Union stand at 15%, the UK at 10%, and Southeast Asian competitors like Indonesia, Vietnam, and the Philippines range between 19–20%. India’s proposed rate, however, is still below China’s current 30%. Malaysia faces a similar 25% rate.
Experts have flagged the tariff announcement as a negative signal for India, particularly if trade negotiations remain stalled. With the US-India trade deal still under discussion, the uncertainty could weigh on FY26 growth projections.
Aditi Nayar, Chief Economist at ICRA, emphasized that the economic fallout will largely depend on the size and scope of the penalties attached. “Earlier, when the US imposed tariffs, we revised our FY2026 GDP growth forecast for India down to 6.2%, anticipating soft export numbers and delayed private investment. The newly proposed 25% tariff and added penalty are more severe than we initially expected and are likely to create additional pressure. The exact downside will hinge on the nature and scale of the penalties,” she said.
With high-stakes trade negotiations underway, industry leaders and policymakers are urging a swift resolution that safeguards national interests while preserving India’s strong economic ties with the US.
